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In current scenario credit risk in Indian banks has been increased due to dynamics of market, market competition, social and economical condition, and foreign exchange business and Global Business. Non Performing Assets reflect the performance of banks. A high level of Non Performing Assets suggests high probability of a large number of credit defaults that affect the profitability and net worth of the banks and also decreases the value of the asset. The impact of the NPAs is not only on the banks but also on the Indian economy. In fact high level of Non Performing Assets in Indian banks is nothing but a reflection of the nation of health of the industry and trade. It is necessary to manage NPAs to improve the financial health in the banking system. Today, the Indian banking industry is dealing with the very big amount of NPAs which is fifth largest in the world. As on June 30, 2018, the gross Non Performing Assets of the banking sector were 11.52% of the total assets while the net Non Performing Assets were 5.92%. As on March 31, 2018, the gross Non Performing Assets were at 11.68% and net Non Performing Assets were 6.21%. Thus there is slight improvement in Non Performing Assets this year. This paper considers the aggregate data of private sector and interpret the Non Performing Asset management from the year 2005 -2018. On the conceptual side, it gives an overview of Non Performing Asset, Types of Non Performing Asset, causes and impact on banks. on the calculation side, it covers various NPA related ratios, use of Least square method for estimating Gross NPAs in the year 2019-20. The finding reveals the percentage of Gross Non Performing Asset to Gross advances is decrease and the ratio of Loss Advances to Gross Advances are higher in Private sector banks.

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How to Cite
Dr. Reena Gupta, & Dr.Sanjay Sharma. (1). Retail Credit Risk Management In Commercial Banks In India With Special Reference To Private Sector Bank. Think India, 22(10), 1355-1367. Retrieved from